The appearance of Knoxville Divergence, developed by Rob Booker, is the suggestion that price is set to reverse course. It is a counter-trend indicator.
This means that if price has been moving upward on the 240-minute chart above, and we see a Knoxville Divergence line above price, it is a suggestion that price is possibly going to move lower in the near future. Because of this, it is a useful indicator for counter-trend traders, or trend-traders who want to look for a pullback before they enter a trade with the longer-term trend.
Knoxville Divergence is comprised of two elements:
Rob Booker uses Knoxville Divergence on the 1-minute charts all the way up to the monthly charts.
Rob Booker has been using Knoxville Divergence with stocks, mutual funds, bonds, futures, currencies - everything - for years.
Using Knoxville Divergence with the MetaStock Explorer will let you search through any market you are interested in and identify those securities that are exhibiting a Knoxville Divergence.
MetaStock will automatically find, label, and chart the Knoxville Divergences.
Rob Booker is an accomplished author, trader, and podcast host. He travels all over teaching his unique strategies for trading.